Nick owns a business called Something Old which buys and sells antiques and also decorates people's homes. Nick acts as a sole trader - the business is not a corporation.

Among Nick's staff is a talented designer, Elizabeth.Elizabeth goes to the house of Ollie, who wants a completely new 'look' for his interior. She shows Ollie photographs of the work she has done, but forgets to say that she works for Nick. Ollie is very impressed and agrees to have Elizabeth re-decorate his house for $ 100 000.A few days later, Ollie gets a call from Nick who informs Ollie that Elizabeth is her agent and that, having obtained the contract on her behalf, she (Nick) will come to Ollie's house the following week to start the project. In response, Ollie says 'I have never heard of you and I certainly don't want you re-decorating my house, so the deal is off'.

One of Nick's employees is Sylvester. One day a lawyer for a deceased estate comes into the shop, offering an 18th century clock for sale. Sylvester tells the lawyer that the shop isn't interested in buying it, but phones the lawyer a few days later and offers to buy it personally for the sum of $ 10 000, which the lawyer accepts Sylvester goes to the lawyer's house to collect the clock. Sylvester then sells the clock to a friend of his, who he (Sylvester) has long known is a collector of such clocks, for $ 15 000.

Another of Nick's salespeople, Ava, deals with major collectors.He also acts as Nick's finance manager, and has access to the business' bank account. He has frequently negotiated contracts on Nick's behalf with Angela, who is an art collector. The contracts are usually entered into by email. The quality of Ava's work has been declining over the past few months. Despite several warnings his performance does not improve. One Friday afternoon, Nick says to Ava "You are fired with immediate effect - clear out your desk and leave, we will send you your final pay". Nick leaves work without making sure that Ava has actually left the premises. Ava sends an email to Angela, saying that the shop has just acquired a painting by a prominent Australian artist, which he says Something Old will sell for $ 50 000. Angela says she would like to buy the painting, and makes an electronic transfer of $ 50 000 into the Something Old bank account, saying that she will collect the painting on Monday. Ava withdraws the $ 50 000 from the account and disappears overseas with it. When Angela comes to collect the painting on Monday, Nick refuses to give it to her, saying that Ava had no authority to sell it as he had been fired. Angela has sued Nick for delivery of the painting.

Give Nick legal advice in relation to the above situations, citing relevant case law authority.

You must use the ILAC method when answering problem questions.